25 July 2003
Nearly two-thirds of NHS mental health trusts failed to balance their budgets last year, according to research by the Sainsbury Centre for Mental Health.
The financial data of 18 trusts were examined and, of these, 11 were found to be running a deficit by the end of the 2002/03 financial year. The funding gaps ranged from £1,000 to £5m, the survey, published on July 24, found. It did not name the trusts concerned.
Staffing costs are by far the greatest strain on budgets, with some trusts spending well over £1m per year on hiring locums and agency nurses to cover shortages.
Spending on drugs, and debts accumulated in previous years, were other common causes of budget problems.
SCMH chief executive Matt Muijen said the shortfalls were damaging staff morale and threatening quality of care. 'Most of the trusts facing deficits balanced their budgets by the end of the year through brokerage loans from other NHS bodies. Many of them now face tough decisions on how to pay back these loans,' he added.
'Few have assets to sell off so most will have to cut costs one way or another.'
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